This is posted on Thrive Global
As you might imagine, my phone has been ringing off the hook with clients, friends, and students asking me all about what will happen to their credit if they are missing payments due to the partial government shutdown. So I thought I’d address what’s happening and give you a step-by-step plan to protect your credit if you are in this situation. If you’re being affected by the shutdown, you’ve got some work to do to protect your financial security and your credit score. Here’s my step-by-step plan.
First of all, don’t panic if you just missed your first set of payments. Remember that a late payment does not report on your credit until the 30th day from your due date. So, you have 30 days before you get reported late from the due date, which may help ease your mind a bit.
But there’s still work to be done:
No foolin’! Protecting your identity is no joke. These days thieves have become very sophisticated and they are amassing data that can be used for a multitude of crimes like filing your taxes and stealing your refund, or creating alternate identification to allude authorities or even worse have you charged for a crime you didn’t commit.
There are several ways to protect your identity, many of which you’ve heard about and are likely practicing. However, there are a few lesser known, lesser understood strategies that can give you better protection and more peace of mind.
Do you want to build new accounts on your credit report? I have a way that can help you. FICO credit score likes types of credit on your credit report. Often times people are building credit with just secured credit cards. You can add an installment loan to your credit report. I found a lender that does this and it works differently from a typical loan. Rather than borrowing money up front, you make fixed monthly payments into a savings account for a specific period of time. The bank reports your payments to the credit bureaus, allowing you to build a new installment loan. At the end of the loan term, you can access the money in the savings account so I feel it is a win, win.
Here is my link to get this credit-builder loan:
Remember how I said FICO credit score is 35% payment history, so this can start helping with that part of the score. 30% are regarding balances so keep the credit card balance low. 10% of the score is types of credit, that is why if you get a...
I didn't know that by finding a solution to a big problem, I would be earning extra income and changing peoples lives. Here is my latest quick podcast.
and a video I posted:
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To Your Success~
Happy Spring! Perhaps you can relate to wanting a new beginning with your personal finances and credit as well? Spring is a perfect time, especially if you’re still dealing with paying off holiday shopping bills or are planning some major purchases like a home or a car this year. Think of the steps below as Spring Cleaning for your Credit. Follow this plan, and come summer vacation-time, you’ll feel as peaceful as a summer Sunday.
Dust – Have you checked your credit lately? If you haven’t pulled it in the last six months, it’s time to blow the dust off and take a look. Visit annualcreditreport.com or myfico.com to access your report. Checking your credit regularly prevents identity theft and fraud, and helps you stay on track with maintaining your healthy credit. Regular check-ins can help raise your score, especially if there are errors on your report that are costing you points.
Prune – Cut back on your revolving credit accounts. Having a...
Each year, as part of my goal setting and planning for the months to come, I pick a word for the year. I’m curious, do you do this too? We perpetuate what we focus on, so in naming my year, I’m putting into motion a self-fulfilling prophesy and my word permeates each aspect of my life, my work, and my relationships. It’s amazing the power you can summon to create your future just by naming it. And this year, my word of the year is ‘Focus.’ Feel free to join me and use this as your word for the year too!
Now that we’re well clear of the holiday season and those holiday shopping are arriving in the mailbox, many of us will be longing for some focus in our finances. If you have some financial goals this year to buy a home, pay down debt, or replace your car, you’re going to need some focus on your credit health to get those things done. And I’m here to help! Here are three tips to shift your focus to improving your credit and finances...
Unless you’ve been touched by it or have known someone who’s been a victim, you may not think much about identity theft. However, according to the Bureau of Justice, each year about 17.6 million Americans or 7 percent of the population are victims of ID theft. That’s each year! About 2 in 5 of us have either been victims or know someone who has, according to one statistic. Another report states that financial losses add up to about $50 billion each year! To me, these numbers mean that we’re all likely to be affected by ID theft at some point if we haven’t been already; or worse, we’re being victimized right now and do not even know it.
The good news is we can each take simple steps to protect ourselves and our families and stop ID thieves in their tracks. Here are three easy actions you can take:
You open the mailbox and there’s an envelope addressed to you. It’s not a bill (who wants bills???) so you tear open the envelope. Is it a letter from your favorite aunt? Is it a few photographs from a friend’s recent trip? Is it a letter from a secret admirer?
No, it’s a letter from your credit card company and they’re writing to tell you some exciting news: You’ve been approved for a higher credit limit. All you need to do is call them back and tell them that you’re interested in accepting it.
Your first thought is: “Wow, a higher credit limit! Just imagine what I could do with that!!!”
And your second thought is: “Hmmmm… do I NEED a higher credit limit? That just means I could potentially owe more money.”
A higher credit limit on your credit card could be good or it could be bad. If you’re hoping I give you just one answer, sorry; that’s not what you’ll get from me...